Larsmo is located between the cities Jakobstad and Karleby in Ostrobothnia region. The good location makes it easy to come to Larsmo and the opportunities for industry and work are excellent.

The municipality has always been connected to ship building and still is. Among the more well-known ship-building companies are Baltic Yachts, which builds high-tech sailing yachts in carbon fiber, as well as Bella boats.